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Revisiting the business cycle model with cubic nonlinear investment function

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  • Muñoz-Guillermo, María

Abstract

Puu [38] introduced a symmetric business cycle model with a cubic investment function depending on a parameter, nevertheless the fact that symmetry is not a needed condition for the investment function was highlighted in [40]. In this paper, the model for business cycles proposed by Puu is revisited using a topological entropy approach, in particular, we prove the existence of topological chaos for a wide range of parameter values. Moreover, a non-symmetric cubic investment map generalizing the model introduced by Puu is considered, giving answer to the posed question.

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  • Muñoz-Guillermo, María, 2021. "Revisiting the business cycle model with cubic nonlinear investment function," Chaos, Solitons & Fractals, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:chsofr:v:142:y:2021:i:c:s0960077920309024
    DOI: 10.1016/j.chaos.2020.110510
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    References listed on IDEAS

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    1. Arnold Heertje & Peter Heemeijer, 2002. "On the Origin of Samuelson's Multiplier-Accelerator Model," History of Political Economy, Duke University Press, vol. 34(1), pages 207-218, Spring.
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    5. Hommes, Cars H., 1993. "Periodic, almost periodic and chaotic behaviour in Hicks' non-linear trade cycle model," Economics Letters, Elsevier, vol. 41(4), pages 391-397.
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